Reynolds’ first-quarter volume down

| April 24, 2014

R.J. Reynolds’ domestic-market cigarette volume during the first quarter to the end of March, at 14.3 billion, was down by 3.8 percent on that of the first quarter of last year, 14.9 billion.

Total growth brands volume was up by 1.2 percent from 9.6 billion to 9.7 billion, driven by a 2.5 percent increase to 4.9 billion in sales of Camel. Sales of Pall Mall, the other growth brand, were down by 0.1 percent to 4.8 billion.

Other brand sales were down by 12.9 percent from 5.3 billion to 4.6 billion.

Reynolds’ share of the U.S. retail market, at 26.7 percent was up by 0.1 of a percentage point. The share of its growth brands was said to have been increased by 0.7 of a percentage point to 19.4 percent, while the share of its other brands was down by 0.6 of a percentage point to 7.2 percent.

Reynolds’ cigarette market performance was reported yesterday by Reynolds American Inc., which also reported Santa Fe and American Snuff figures.

Santa Fe’s domestic-market cigarette (Natural American Spirit) volume during the first quarter to the end of March, at 0.8 billion, was up by 10.7 percent on that of the first quarter of 2013.

And Natural American Spirit’s market share rose by 0.2 of a percentage point to 1.5 percent.

Sales of American’s moist snuff cans during the first quarter of 2014, at 116.9 million cans, were increased by 10.7 percent on those of the first quarter of last year.

Sales of Grizzly were up by 12.1 percent to 106.4 million, while sales of other brands were down by 1.6 percent to 10.5 million.

American’s share of the U.S. market, at 34.6 percent, was up by 0.8 of a percentage point. Grizzly’s market share was up by 1.1 percentage points to 31.5 percent, while the share of the company’s other brands was down by 0.2 of a percentage point to 3.1 percent.

RAI’s reported operating income during the first quarter of 2014, at $590 million, was down by 33.5 percent on that of the first quarter of last year, $887 million. Adjusted operating income was down by 3.6 percent to $665 million.

Reported net income was down by 28.5 percent to $363 million, and adjusted net income decreased by 3 percent to $386 million.

Reported net income per diluted share was down by 27.2 percent to $0.67, while adjusted net income per diluted share was unchanged at $0.72.

“Reynolds American’s reportable business segments continued to make excellent progress in the first quarter, with strong market-share gains on all their key brands,” said Daniel M. Delen, president and CEO of RAI.

“As we previously noted, R.J. Reynolds Vapor Company is investing heavily in the expansion of its highly differentiated Vuse Digital Vapor Cigarette this year, and this spending impacted RAI’s first-quarter earnings and margin as expected.”

Delen said that first-quarter performance reflected three key strengths of RAI’s operating companies: excellence in innovation, superior engagement with adult tobacco consumers and efficient execution. “These strategies are not just effective for success in a transformative environment; they also form the core of our companies’ competitive advantage,” he said.

Category: Breaking News

Comments are closed.

Sponsor Ad

Sponsor Ad

From the leaf lands

Lebanon suffers leaf losses

Lebanon suffers leaf losses

A survey is to be carried out to determine the extent of losses incurred by tobacco growers in southern Lebanon, where viruses are said to have caused extensive damage.

| May 24, 2018
Universal presents results

Universal presents results

Universal Corporation expects to make higher volume sales from the next tobacco-crop cycle, given that the global market remains stable.

| May 24, 2018
Contracting Burley

Contracting Burley

Tennessee’s Burley crop is expected to fall by 20 percent or more following Alliance One International’s decision not to buy US Burley.

| May 22, 2018
Leaf prices increased

Leaf prices increased

Flue-cured tobacco growers in Zimbabwe will be hoping that the “encouraging” prices being paid for their leaf will stand up for the rest of the season.

| May 22, 2018
Growers up in arms

Growers up in arms

Some tobacco growers in Pakistan are claiming that tobacco manufacturers are exploiting them, and they have vowed to fight back.

| May 22, 2018
Universal results webcast

Universal results webcast

Candace C. Formacek, vice president and treasurer at Universal Corporation, will host a results webcast on May 23.

| May 21, 2018

Sponsor Ad

Sponsor Ad

Web exclusives

Discussing challenges

Discussing challenges

Tobacco growers convene in Indonesia.

| April 2, 2018
The promise of heated tobacco

The promise of heated tobacco

Peter Nixon, PMI’s U.K. and Ireland MD, praises England’s progressive approach to new technologies.

| February 28, 2018
Celebrating cigars at Puro Sabor

Celebrating cigars at Puro Sabor

Five days of factory tours, farm visits, recreational activities and many, many cigars.

| February 5, 2018
Farmers concerned

Farmers concerned

The ITGA worries about slumping demand for leaf tobacco and a lack of alternative crops

| November 2, 2017
Their fair share

Their fair share

Tobacco growers deserve better

| November 1, 2017
Lease on life

Lease on life

Industry leaders respond to the FDA’s new attitude toward vapor products.

| October 1, 2017
The Vype Dossier

The Vype Dossier

Proving the reduced-risk potential of an e-cigarette

| October 1, 2017

Sponsor Ad

Sponsor Ad

Sponsor Ad